Ah, classic cars: something that piques any car lover’s interest. And, if you are a wealthy car-lover, you may want to consider investing in classic cars. A recent wealth report suggested that more and more wealthy investors are investing their hard-earned money in classic cars. Classic cars hold their value well over time and are seen as luxury items, and therefore makes a great investment.
The classic car investment market has seen an increase of 8% in the last year with a 179% increase over the last 10 years, and it doesn’t seem to be slowing down any time soon.
Out of all the collectables investors invest in, classic cars offer a 28% return on investment every year, which is very high compared to an average 2-4% on other collectables like coins and watches. Other collectable items like new cars, yachts and private jets are not included in this category, because they do not hold value over time. It is therefore very important to do a lot of research before attending a classic car auction – the more you know about the vehicle, the better you will be able to make a good purchasing decision.
Some of the popular classic collectable cars include the Porche Boxter 986, the original Fiat 500, the Alfa Spider, the BMW E46 M3 CS, CSL, E60 M3 and 2002 Turbo, the Porsche 993 Carrera 2, the Mercedes SL W113 ‘Pagoda’, the Ferrari Daytona, the Porsche 993 GT2 and the Aston Martin V8 Vantage, amongst others. Some of these classics are worth more than R18 million! Other collectable classics can fetch even more! The 1995 McLaren F1 sold for $15.6 million, and the 1959 Ferrari 250GT California Spider LWB sold for $18 million. One of the biggest sellers, the 1956 Aston Martin DBR1, raced by Sir Stirling Moss, fetched a whopping $22.5 million.
There are many ways to invest your money, but if you are a car lover, this is the one for you. So, if you have some cash laying around, it might be worth looking into investing it in a classic car.